Markets trim gains; trade continues in green

Indian benchmark indices trimmed gains but continued their trade in green in morning session on emergence of buying by funds and retail investors. Sentiments got some support with Union Commerce Minister Piyush Goyal’s statement that he will be talking to USTR Robert Lighthizer in the next few days to 'quickly wrap' up initial aspects of the proposed trade deal, which is under negotiations. India and the US are negotiating a trade deal to iron out differences and promote two-way commerce. Besides, firm global cues coupled with the appreciation in rupee value against the dollar added to the optimistic sentiments. Indian rupee appreciated by 14 paise to 75.52 against the US dollar in early trade on fresh selling of the American currency by exporters and bankers. However, gains remain capped as investors remained anxious with Federation of Indian Export Organisations (FIEO) President S K Saraf’s statement that boycotting Chinese products may not be feasible for India as the domestic industry is dependent on inputs from the neighbouring country. He said India needs to be cautious while banning or restricting Chinese goods.

On the global front, Asian markets were trading mostly in green, as global sentiment remained doggedly upbeat despite increased volatility and rising new coronavirus infections. Back home, the BSE Sensex is currently trading at 35022.45, up by 180.35 points or 0.52% after trading in a range of 34963.35 and 35241.04. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.56%, while Small cap index up by 0.56%.

The top gaining sectoral indices on the BSE were IT up by 3.82%, TECK up by 3.11%, Oil & Gas up by 1.77%, PSU up by 1.02% and Energy up by 0.96%, while Realty down by 0.33%, FMCG down by 0.29%, Power down by 0.17%, Bankex down by 0.16% and Capital Goods down by 0.11% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 5.15%, TCS up by 3.61%, Indusind Bank up by 2.83%, HCL Tech. up by 2.28% and Tech Mahindra up by 2.13%. On the flip side, Kotak Mahindra Bank down by 3.04%, Hindustan Unilever down by 1.47%, Bajaj Finance down by 1.18%, Maruti Suzuki down by 0.97% and HDFC down by 0.79% were the top losers.

Meanwhile, in order to help companies which are under stressed due to the Covid-19 pandemic, Union Finance Minister Nirmala Sitharaman has said that the government is in talks with the Reserve Bank of India (RBI) for a one-time restructuring of loans. Sitharaman said the government is also in talks with the RBI and other banks to ascertain why the reduction in interest rates is not being passed on to customers.

Further, she said the government will also consider providing an emergency line of credit to individual owners of businesses while a decision on the suggestion to offer collateral free credit based on pending Goods and Services Tax (GST) bills will be deliberated upon. Presently the Rs 3 lakh emergency line of credit is being offered to Micro, Small and Medium Enterprises (MSMEs).

She also urged the Indian industries to introspect on how businesses are run and on how the ‘Aatmanirbhar Bharat' mission could be realised to its full potential. Pointing out the active pharmaceutical ingredients (APIs) for example, Sitharaman said that India is a big market and they should be manufactured in the country without depending on one or two countries.

The CNX Nifty is currently trading at 10345.00, up by 56.10 points or 0.55% after trading in a range of 10329.60 and 10407.75. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Infosys up by 5.07%, BPCL up by 3.93%, Wipro up by 3.51%, TCS up by 3.47% and Zee Entertainment up by 3.45%. On the flip side, Kotak Mahindra Bank down by 2.77%, Hindustan Unilever down by 1.34%, Bharti Infratel down by 1.29%, Bajaj Finance down by 1.14% and Maruti Suzuki down by 0.94% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 308.92 points or 1.39% to 22,568.71, KOSPI rose 26.38 points or 1.25% to 2,138.75, Straits Times advanced 24.12 points or 0.93% to 2,614.27 and Jakarta Composite soared 6.39 points or 0.13% to 4,903.12. On the flip side, Hang Seng decreased 140.60 points or 0.57% to 24,640.98.